Indian PR industry grapples with 16% attrition rate, cites poor compensation, work culture
83 percent of the respondents said that poor compensation and benefits were the key reasons to exit PR consultancies, followed by lack of growth opportunities at 79 percent
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The PR industry in India reported an average attrition of 16 percent in fiscal year 2023. According to a report by the Public Relations Consultants Association of India (PRCAI), poor work culture and poor compensation remained the major reasons behind for high attrition rate.
According to PRCAI's SPRINT 2024-25 report, 83 percent of the respondents said that poor compensation and benefits were the key reasons to exit PR consultancies, followed by lack of growth opportunities at 79 percent and work-life balance at 38 percent, respectively.
Besides, Gen Z's curiosity and eagerness to explore is another reason for higher attrition in the PR industry.
"Young people are more methodical and predictable, which is not necessarily how the PR industry operates. Hence, attrition is high. They want to talk to bosses. The industry will have to adapt," Deeptie Sethi, Chief Executive Officer, PRCAI said.
Notably, the Indian PR industry grew more than three times compared to global PR, reaching Rs 2,500 crore in revenues in 2023. Its share in the Asia-Pacific market increased from 15.4 percent in 2022 to 17 percent in 2023.
"Over the last decade, India’s PR industry has expanded at a compounded annual growth rate (CAGR) of 12.8 percent, outpacing global growth by three times," Atul Sharma, President of PRCAI said.
The study highlighted that, with a 46 percent share, private corporates remain the largest revenue contributors; but start-ups are quickly rising, now accounting for a 22 percent revenue share, while NGOs have grown to an 11 percent share, showcasing the growth of purpose-driven PR.
'AI in the PR industry'
The respondents flagged the risks of AI. While 90 percent of respondents believe AI and big data will propel PR, an identical percentage warns of threats and reputational risks of AI-generated misinformation and deepfakes.
According to the SPRINT 2024-25 study, the top two applications of AI in the Indian PR industry will be research and strategy (82 percent of respondents) and conversational AI (77 percent).
"From automating content creation to real-time media monitoring and in-depth data analysis, AI will change the conventional operating structures of agencies. It will also streamline processes like campaign reviews and performance measurement, enabling PR teams to focus more on strategy than execution," Sharma said.
Currently, India has 180 PR companies with only three having a turnover of above Rs 100 crore. The large firms with revenue of more than Rs 50 crore control 56 percent of the market.
The report underscored that the PR industry is facing growth pangs as the budget of clients remains flat compared to the expenses of consultancies.
"The dichotomy is that clients are cutting budgets, but expecting more. So, that is the issue. Brands want you to be domain experts, they want you to be problem solvers, they want you to be on top of tech and PR, but budgets do not increase," Vineet Handa, Founder and CEO at Kaizzen PR said.
